HMO Licence vs Planning Permission: You Might Need Both

One of the most common misconceptions we encounter is landlords assuming that an HMO licence covers everything they need to legally operate a shared property. It doesn't. Licensing and planning permission are entirely separate legal regimes, administered by different departments within the same council, and you can be fully compliant with one while breaching the other.

Two different questions

An HMO licence answers the question: is this property being managed and maintained to an acceptable standard for the number of people living in it? Planning permission answers a completely different question: is this property legally allowed to be used in this way at all, under the Town and Country Planning regime?

Permitted development and Article 4 Directions

Smaller HMOs (generally 3-6 unrelated occupants, classified as use class C4) can often be created from an ordinary family home (use class C3) under permitted development rights, without needing a specific planning application. However, many London boroughs have removed this permitted development right entirely within some or all of their area, via what's called an Article 4 Direction — meaning full planning permission is required for the same C3-to-C4 conversion that would be automatic elsewhere.

Larger HMOs need planning permission regardless

For larger HMOs (generally 7 or more occupants, classified as a "sui generis" use), planning permission is required in every borough, Article 4 Direction or not — permitted development rights never extend this far.

Why this catches out even experienced landlords

A landlord can secure a fully valid HMO licence — the council assesses the licence application on management and property standards — without anyone flagging that the underlying use of the property was never lawfully established under planning law. The two departments don't always cross-check each other automatically, so a property can sit in this gap for years before an issue surfaces, typically at sale or during an unrelated council enquiry.

Check both before you commit

If you're converting a property into an HMO, or buying one that's already operating as such, verify the planning position — specifically whether an Article 4 Direction applies in that borough — alongside the licensing position. They are not the same question, and passing one tells you nothing about the other. Contact us and we can point you toward the right planning guidance for your specific borough alongside handling your licence application.